Its the ACN that is important and it is this that identifies the company.

Considered a ‘trading name’ instead of changing the company name?

Krammer wrote:

Accountant is out of state for the week and I had some questions in regards to trusts. A little background information:

– Consultant with multiple streams and yearly intake of $250-350k
– Trust hasn’t been set up yet, looking into best options to use revenue from consulting to fund property investment scheme for tax advantages
– Recent transition from 457 to PR and am able to now form a company
– No personal property

Anyone in a similar contract role and have experience to share? Which strategies should I look into for tax benefits? Most of the guys I work with always give me the “my wife handles it” brush off when I ask about their setup. Any links to further reading or information would be greatly appreciated

I specialise in trusts – what are your questions?

1. Yes it would be in the written agreement you entered with the bank. Contract and/or terms and conditions booklet.

2. This would apply to any property owned by the trustee.
There would be benefits of transferring, but also costs and ongoing issues. Lots to consider.

3. The problem is your life may not follow what you propose in the private ruling app form. Turn around time is supposed to be 28 days, but is usually longer.

Yes you can claim expenses associated with it. Even if you didn’t claim you would still be subject to CGT

1. From a corporations law point of view you may need a new director. You shoudl also consider the terms of the loan agreement – may need bank’s consent.
2. Loss of the 50% CGT discount. No income to offset any losses (other than rent). Losses may carry forward.
3. Consider if you will actually be a non resident. There is a recent case where an aussie went to dubai for work for a number of years yet he was still a tax resient here.

Best to seek tax advice on this.

Yes, they probably can charge you LMI. This is payable upfron on the loan amount. LMI and mortgages are ‘governed’ by the banks. If you want to make a complaint the first point of call would be to the bank’s complaint department and then try to get onto COSL or the credit ombudsman.

It is the same principle. If you make a loss from a legitimate business or investing in houses this loss can be used to offset other income. For property it works if you have an ABN or not (because property investment is not a business ususally).

If you start offering services to others then this would be a business and you could claim associated costs, including travel you make in connection with the income.

Not a very good idea to invest in property in a company and certainly not a trading company. You could easily lose the property.

Gifts aren’t taxed in Australia. – as long as it is not really income.

You should consider the asset protection aspects of receiving this gift too.

Having an ABN won’t change anything. You cannot contract with yourself and even if you could the income would cancel out the deductions. Nor could you claim more expenses just by having an ABN. If you are contracting with others you could claim expenses associated with the production of this income.

Would you need any licences?